thankyou for your reply..
if my 6rs premium change to 20rs,
then i will buy it for 20rs, where my loss will be 20-6=14rs,
then i will sell 20/2= 10rs premium 2 lots-
then 20-14= 6rs profit... right..
is there any problem in this ..../
as you said it will happen 1 in 10 times right.../
if my 6rs premium change to 20rs,
then i will buy it for 20rs, where my loss will be 20-6=14rs,
then i will sell 20/2= 10rs premium 2 lots-
then 20-14= 6rs profit... right..
is there any problem in this ..../
as you said it will happen 1 in 10 times right.../
1.Assuming if you go for carry forward trades, you cannot have control to book loss at 20 rs due to gap's in next day market.
2.Assuming intraday, you may get 2 more lots limit but decay in this kind of low premium options mostly happen in overnight positions ( except for expiry days ). So you cannot capture the premium decay regularly during day time and one intraday swing will take away 3 profit trades when your sl is hit.
3.Assuming on expiry day- yes you get quick 6 rs as they expire on the day, but even little market swings will take away stop loss.
If you are new to options market, please dont jump into these.. Start with spreads, you wont gain much but you can protect your capital and during this period you will get a chance to observe things practically.